The purpose of this memorandum is to provide Executive and Legislative Branch agencies
with instructions for processing the 2% general increase for employees who are eligible to
receive this increase.

Eligibility for Increase

All employees are eligible to receive a 2% general increase unless a fixed salary is
set by statute.

Some employees' salaries are set by or subject to the approval of the Governor or a
Board or Commission. Specific approval from the salary setting authority must be
obtained for all such employees as prescribed by Law before a general increase can be
authorized.

Employees Eligible for Automatic Processing

The general increase will be applied automatically to employees for whom eligibility
and amount of increase can be determined through electronic means. All of the
following conditions must be met:

Employees must be on active pay status (employment status 1).

The employee cannot be redlined.

The position must be active as of June 30, 1997.

The employee must be assigned to an eligible administrative unit and salary
specification.

Note 1 - Authorization required
Note 2 - Some employees' salary may be set at a fixed amount in statute and therefore may
not be eligible for the general increase.

Employees for Whom Manual Processing is Required

1. All redlined employees who are eligible for an increase must be processed by
submitting a Human Resource Profile to the Bureau of Human Resources ATTN: Jeannine
Johnson by the following deadlines:

Cycle A - Friday, June 27, 1997

Cycle B - Thursday, July 3, 1997

Attach any necessary approvals from the appropriate salary setting authority as may be
required by law. Please contact this agency for assistance with special or unique
situations.

2. Salary adjustments for teachers who receive prorated paychecks must be
determined by calculating the incremental increase in daily pay that will be earned
for days to be worked on or after June 30, 1997 for the remainder of the contract year in
effect as of June 30, and by paying the additional amount earned on a prorated basis in
the paychecks to be received during the remainder of the contract year.

3. Employees who are on unpaid leave of absence will not be processed for the
general increase until they return from leave. Agencies are responsible to process
this salary change when returning employees to active status.

4. The general increase for Highway Crew employees must be processed by
submitting the appropriate electronic transactions to the MFASIS technical team.

5. TEMP COMP pay will be recalculated automatically using the "5% promotion
rule". The grade and step in the acting assignment that satisifies this rule
will be identified and the appropriate differential will be set as the TEMP COMP rate.
However, the "5% promotion rule" does not always apply to acting
assignments. Agencies must review all TEMP COMP rates and correct any that must be
adjusted due to misapplication of the "5% promotion rule".

Processing Procedures and Key Dates

Processing calendars are attached to this memorandum and should be studied in detail.
The following key dates and notes will assist you in your ongoing work on MFASIS HR
and Payroll, and with the processing of the general increase:

Saturday, June 28th - New salary tables will be loaded on the
production system. Refreshing the salary step for any employee after these new
tables have been loaded will load the new rate of pay into the employee record. New
rates will be loaded in master file records for Cycle A employees.

The Week Beginning June 30th - Cycle B agencies cannot make any master
file changes for the pay period ending June 27th, as incorrect salary rates may be
introduced into the employee record from the new salary tables.

July 5th - New rates will be loaded in master file records for Cycle B
employees.

Week of July 7th - This is a split pay period for all Cycle A
employees. REMINDER: Appropriate T&A entries will be required for
additional T&A processing for the first pay period under the new rates. See the
enclosed Cycle A Time and Attendance Worksheet for important information.

Week of July 14th - Cycle B agencies process T&A for the first pay
period under the new rates.

July 16th - Cycle A receives first paycheck with new rates.

July 23rd - Cycle B receives first paycheck with new rates.

Reports

Departments will receive the following reports on the workday following the electronic
change to the employee records for the particular payroll cycle:

Human Resource Profiles for all employees automatically processed.

List of employees who will be automatically processed for the increase.